Forum Replies Created
Sorry duckster, my mistake. Question 2 should read "Interest only" not "interest free"
(2) Is it right to put just as much cash in as necessary to allow the balance to be paid by rent using an interest ONLY loan. Including expenses of course.
And following your very informative responses, I believe you have already answered the question.
I will now talk to my bank (and accountant) about the Offset Account idea. It sounds like just the thing to allow us to purchase using some cash to bring the loan to a manageable size which will be covered by the rent (expenses etc factored in), and thus leaving the remaining cash available if required. More research here for me I think, but a good start.
Thank you
I'm new at this and not completly certain of the mathmatics but it seems to me that if you add your purchase price of $87K plus stamp duty & fees etc plus the $25K Reno you mentioned (what are we up to now – about $116K give or take) then the actual increase is more like 12%. That's still not bad so well done.
On another note I'm not sure how this property fits in the CF+ bracket as the yield is only just above 5% (based on the approximate $116K)
Please let me know if I'm way wrong. As I say I'm very green at this.
Thanks
